Malaysian economy falls in the lower middle-class category, expected to rise into the higher middle class by 2024 with an average growth of 5.4%, since the past 10 years, according to the World Bank. But that is old news, the pandemic has changed everything. After flatlining of the growth graph, Malaysia has been able to pick up again, though the rise is paced and spread thin between its many primary industries.
The government's quick action on short term plans during the sharp slowdown of the economy has cushioned the blow of Covid-19 on the Malaysia economy. The condition is better than most countries who are experiencing a recession. Focus Economics estimates the growth to pick up by 2022. Many GDP reports for 2020 have suggested the target upliftment of lower income households and job recovery in the coming terms to accelerate the economic recovery of Malaysia.
As for the cloud computing sector, it has been a major contributor to the Malaysian economy. Cloud computing has taken over the world in the aftermath of the failing economy due to the pandemic, but Malaysia is one of the countries to adapt to cloud computing early on. The government has played a great role, setting the example for other countries in adopting cloud-based infrastructures.
According to a report published in last quarter of 2020, the government’s cloud-pro stance will propel the growth to its normal position sooner than expected. Stats say 5G will help service providers create revenue opportunities upto MYR 16 billion. Moreover, the ICT sector alone is expected to grow by 9% by 2023 thanks to the government’s plan to expand this sector and invest in its infrastructure under the Smart City project.
Some of the main industries in Malaysia to be expanded under this are AI, cybersecurity, big data, 5G and e-commerce. The fact that Malaysia ranks third around the world in terms of cybersecurity shows the advancement in the ICT sector. The government is further expanding on IoT to create market partnerships and open doors employment opportunities.
This sector itself has seen a great boom with many foreign companies showing interest in Malaysia as their home base due to the stable economy and robust infrastructure. The future economic graph of Malaysia, despite the temporary halt caused by the pandemic, looks promisingly bright, thanks to the joint force of interest and investment by the private and initiative and action taken by the public sector.